Major Points

If CDE were to issue new 4-year bonds today lenders would expect a 4.8809% semiannual rate of return, which would equate to a .048809 x 2 = 9.7618% APR (so that is the annual coupon interest rate the company would expect to pay if it issued new 4-year bonds today) and a (1.048809)2 – 1 = 10… ................
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